Risk is a fundamental characteristic of financial markets and, derivatives
are the most effective tools for managing this risk. This course introduces the fundamental principles and methods for risk management using derivative securities. It provides students with the theoretical background and the practical skills for valuation of all basic financial derivatives: options, futures, forwards, and swaps and the principles of structuring more advanced strategies for trading and hedging.
The students will learn how to apply these strategies to the management of various types of risks, such as market risk, foreign exchange risk, and interest rate risk. The course also covers the essential details for market organization and the mechanics of derivatives trading.